The European Data Protection Supervisor is seeking clarification on Elon Musk's X platform's decision to allow user data to be automatically fed into its AI startup, xAI, a move that has brought new regulatory scrutiny to social media platforms.

X platform users discovered on Friday that their posts and interactions with the Grok chatbot had been "automatically selected" for "training and fine-tuning" xAI's systems. This decision was made without first obtaining explicit user consent. The setting can only be changed on the desktop version of the X platform, so users currently cannot opt out via the mobile application.

AI, Artificial Intelligence, Robot

Image source note: The image is generated by AI, provided by the image licensing service Midjourney

The Irish Data Protection Commission, which oversees internet companies' compliance with EU privacy laws, said it has been in "months" of communication with the X platform about its plans to use user data to create AI systems. The regulator said it sent inquiries to the company on Thursday regarding issues such as "user transparency."

A spokesperson for the regulator said: "Their rollout of this feature took us by surprise," adding that the regulator has further followed up on Friday, asking the X platform more questions to "seek clarification."

Privacy experts question whether X platform's move could violate the EU's General Data Protection Regulation (GDPR), which requires companies collecting or using personal data to first obtain individuals' consent and disclose the reasons for data collection. If the Irish regulator initiates a GDPR investigation, the X platform could face fines or penalties.

Last month, Meta paused plans to use data from its Facebook and Instagram platforms in Europe for AI training after the Irish Data Protection Commission raised GDPR compliance issues. Meta said this marked "a setback for innovation and competition in AI development in Europe."

Musk acquired the X platform for $44 billion in 2022 and has faced increasingly stringent scrutiny from global regulators as he cuts staff and moderation capabilities and introduces sudden product changes. The European Commission is already investigating the company for alleged transparency and moderation issues under the Digital Services Act.

The X platform's security account said on Friday: "All X users have the ability to control whether their public posts can be used for training Grok, the AI search assistant." This setting will soon be rolled out on mobile platforms. The X platform did not respond to a request for comment.

This rollout comes as Musk attempts to gain an edge over competitors such as OpenAI, Anthropic, and Google, whose most advanced models are "far ahead" of xAI. Access to the X platform's vast user data will provide a significant advantage for xAI. Meanwhile, Grok is available to premium subscribers of the X platform.

Musk's network of companies is becoming increasingly intertwined. Engineers and other senior employees move between his enterprises, and the serial entrepreneur is seeking Tesla board approval to invest up to $5 billion in xAI.

Some xAI investors see the synergies with other Musk entities as a key advantage, while others express concerns about potential conflicts.

Key Points:

1. 🔍 **X platform uses data without user consent, raising privacy concerns**

2. 📉 **Irish Data Protection Commission investigates X platform's data-sharing plans**

3. 🤖 **Musk aims to leverage X platform's data advantage in AI competition**